Financial Survey: Diamondback Energy (NASDAQ:FANG) & Erin Energy (OTCMKTS:ERINQ)

Diamondback Energy (NASDAQ:FANG) and Erin Energy (OTCMKTS:ERINQ) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Diamondback Energy and Erin Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	2	19	1	2.95
Erin Energy	0	0	0	0	0.00

Diamondback Energy presently has a consensus price target of $185.90, suggesting a potential upside of 15.99%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Diamondback Energy is more favorable than Erin Energy.

Institutional and Insider Ownership

90.0% of Diamondback Energy shares are held by institutional investors. 0.5% of Diamondback Energy shares are held by insiders. Comparatively, 62.5% of Erin Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Diamondback Energy has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Erin Energy has a beta of -9.36, meaning that its stock price is 1,036% less volatile than the S&P 500.

Profitability

This table compares Diamondback Energy and Erin Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	27.32%	9.57%	5.70%
Erin Energy	N/A	N/A	N/A

Valuation & Earnings

This table compares Diamondback Energy and Erin Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$11.07 billion	4.15	$3.34 billion	$14.39	11.14
Erin Energy	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Erin Energy.

Summary

Diamondback Energy beats Erin Energy on 10 of the 11 factors compared between the two stocks.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

About Erin Energy

Erin Energy Corporation, an independent exploration and production company, engages in the acquisition and development of energy resources in Africa. Its asset portfolio consists of five licenses covering an area of approximately 6,000 square kilometers across offshore Nigeria, offshore Ghana, and offshore The Gambia. The company was formerly known as CAMAC Energy Inc. and changed its name to Erin Energy Corporation in April 2015. The company was founded in 2005 and is headquartered in Houston, Texas. Erin Energy Corporation is a subsidiary of CAMAC Energy Holdings Limited. On July 13, 2018, the voluntary petition of Erin Energy Corporation for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on April 25, 2018.